North Carolina offers three local property tax exclusions

By Submitted Story on January 29, 2021

Dare County

North Carolina offers three local property tax relief programs for qualified homeowners who declare their home in Dare County to be their permanent residence:

1. Elderly or Disabled Exclusion
2. Circuit Breaker Tax Deferment Program
3. Disabled Veteran Exclusion. 

A permanent residence includes the dwelling, the site of the dwelling (up to one acre), as well as related improvements.  Applicants must be 65 years of age or older to qualify—unless you are under the age of 65 and you or your spouse are totally and permanently disabled (per North Carolina statute), as of Jan. 1, 2021, and meet the income requirements that are noted below.

Elderly or Disabled Exclusion

Applicants for the Elderly or Disabled Exclusion must be 65 years of age or totally and permanently disabled. In addition, the total annual household income for 2020 for both the applicant and their spouse cannot exceed $31,500. For unmarried joint property owners, each owner must apply separately, and benefit limitations may apply based on the percent of ownership.

The Elderly or Disabled Exclusion program excludes from taxation the first $25,000 or 50 percent of the assessed value for the permanent residence, (whichever is greater). Exclusion means part of the value will not be assessed when your tax bill is created.

Once you have been approved for the Elderly or Disabled Exclusion, you do not need to reapply unless ownership has changed, your permanent residence changes, your income now exceeds the current annual income eligibility limit, or you are no longer totally and permanently disabled.

Income documentation is required and must be provided for the review of an applicant’s qualifications. The necessary forms and information are available at www.darenc.com/departments/tax-department/tax-relief-programs, or applicants can call the office at 252-475-5936.

Additional Tax Relief Programs

• Circuit Breaker Tax Deferment Program: To qualify, applicants must be 65 years of age or totally and permanently disabled. The total income for 2020 for both an applicant and spouse cannot exceed $47,250. For unmarried joint property owners, each owner must apply and qualify separately. In addition, all property owners must have owned and occupied the residence for the previous five years.
• Disabled Veteran Exclusion: Veterans who were discharged under honorable conditions and who have a 100 percent total and permanent service-connected disability or their unmarried surviving spouse may be eligible for a reduction in property tax. There are no age or income limitations on this program.

As mentioned previously, the deadline to submit an application is June 1, 2021. Late applications may be considered for good cause through the last day of the calendar year in which the tax is levied, but no late applications for exclusion or deferment may be accepted after the calendar year ends.

To request an application for tax relief or to discuss the various tax relief programs, please call our office at 252-475-5936.